1. GLOBAL ECONOMIC OVERVIEW
In 2022, global economies faced significant headwinds as a result of broadening
inflationary pressures and rising energy costs due to geopolitical strife in Europe. The
Euro area steered clear of deep economic contraction while the US economy remained more
resilient than expected. Global economic activity has also started slowing significantly
as a result of monetary policy tightening to combat inflation, less favourable financial
conditions and supply chain disruptions caused by geopolitical tensions.
Strong private sector balance sheets provided a meaningful buffer against a significant
downturn in 2022. Global inflation is likely to decline from 8.8% in 2022 to 6.6% in 2023
and 4.3% in 2024. The emerging and developing economies of the world are expected to play
a major role in accelerating global economic growth going forward. According to the latest
report by the IMF, the global growth rate is estimated to slow down to 2.9% in CY23.
Flowever, global growth is expected to be back on track from CY24, increasing by 3.1% in
CY24. (Sources: IMF Blog, May 2023and 1 IMF World Economic Outlook, April 2023)
2. INDIAN ECONOMY
As per IMFs latest World Economic Outlook report (April 2023), Indias growth is
expected to slow down to 6.1% in 2023-24 from 6.8% in 2022-23 (estimated) due to
tightening financial conditions and global headwinds. Still, Indias growth outlook
remains solid on strong domestic fundamentals such as a relatively low level of inflation
compared to the DMs, a prudent monetary and fiscal policy mix and as a consequence of
several reforms carried out in recent years, in addition to political stability. Indeed,
India will continue to be the fastest growing major economy for the third consecutive
year.
India remains the fastest-growing G-20 country. Backed by its strong policies, the
economy is anticipated to recover quickly from these global headwinds. The governments
emphasis on capex and strengthening the private sectors intent to spend is likely to
bolster investment demand. Demand circumstances in India remain favourable for economic
growth. India enters the new fiscal year with optimism, bolstered by underlying and
overall macroeconomic stability, and vigilance against geopolitical and geoeconomic
concerns.
The investment cycle is expected to strengthen further, supported by higher private
capex and the Governments continued focus on capital spending. A pickup in private capex
will be led by healthier balance sheets of companies and banks along with improving
capacity utilization in manufacturing. While slowing global growth will drag exports,
Indias rising share in global manufacturing exports will provide some cushion as will the
growth in services exports. Key risks to Indias growth outlook include a significant
tightening in financial conditions to contain high inflation, a sharp rise in commodity
prices and protracted recessionary tendencies in DMs. (Sources: Press Information Bureau,
March 2023 and Increase in Capital Expenditure, PIB February 2023)
3. BUSINESS OVERVIEW
Your company was incorporated in the year 1991. Your company is in the business of
Pligh Pressure Laminate (H.P. L) Sheets & Compacts. Alfa ranges are available in
several Colours, Designs and Textures consisting of more than 400 design decors and more
than 50 textures. With more decors and more finishes, our innovation brings you beautiful,
high quality environmental friendly decorative solutions.
Alfa Pligh Pressure Laminates are recognized and appreciated by architects, interiors
and fitters. We confirm all our produce is as per strict requirements of EN438 (European
Standard). To ensure European quality, all decorative papers are sourced from worlds best
European printers.
In changing world, we are changing faster. We are relentless in our pursuit of
discovery and innovation, bringing in technologies that empower us to enhance your
environment, constantly opening the door to a world of possibility. Alfa Laminate sheets
are used for various applications in many areas such as Furniture Covering, Wall Paneling,
Partitions, Door Covering, Shower Panels, Interior Wall Paneling, Exterior Wall Cladding,
Green Chalk Board, White Marker Board, Kitchen Top and Backsplash, Table Top,
Anti-bacterial laminate, Anti-fingerprint laminate, Cubicle partition panel and more other
things.
Your company assures highest commitment of consistent innovation by introduction of new
designs as well as finishes to feed the creative mind of interior decorators and furniture
designers. The companys philosophy is to attain transparency and accountability in its
relationship with all its stakeholders, ensuring a high degree of regulatory compliance.
4. DISCUSSION ON COMPANYS PERFORMANCE
Your Company continues to sustain with its overall performance in the financial year
2022-23 driven by the average performance in existing business. Currently the Company is
running well in decorative laminates segment. Your Directors have been making efforts on
all fronts viz. production, marketing, finance and cost control etc. and these efforts
have been yielding good results. The outlook for the companys products appears to be good
and the company is confident of achieving improved operational performance.
The Profit before Tax amounted to Rs. 195.15 lakhs as against to Rs. 219.35 lakhs in
the previous year. The net profit aftertax was Rs. 145.78 lakhs as against Rs. 162.72
lakhs in the previous year. During the year under review achieved Export sales of Rs.
4707.471akhs.
5. INTERNAL CONTROL SYSTEM
The Company has in place robust internal control procedures commensurate with its size
and operations. Company has the internal controls Department headed by Internal Auditor of
the company. The Board of Directors is also responsible for the internal control system,
sets the guidelines, verifying its adequacy, effectiveness and application. The Companys
internal control system is designed to ensure management efficiency, measurability and
verifiability, reliability of accounting and management information, compliance with all
applicable laws and regulations, and the protection of the Companys assets so that the
companys main risks (operational, compliance-related, economic and financial) are
properly identified and managed overtime.
6. HUMAN RESOURCES AND INDUSTRIAL RELATIONS
Company maintained healthy, cordial and harmonious industrial relations at all levels.
The Board of Directors and management wish to place on record their appreciation of the
efforts put in by all employees to achieve good performance.
Some of the companys core developments on the HR front and imitative planned during
the year under review included the following:
• Standardized recruitment through creating robust systems and processes to ensure
that only those qualified whose skill sets matched with the requirements;
• Focused on training to establish a professional elearning module
• Focus on capabilities enhancement through structure interventions, both on
functional and behavioral side
• Withaviewtoprofessionalizepayrolftooutsourcethe
servicetoensurethatallstatutoryandregulatorycom pliancesare met to the highest level
There was not any case pursuant to the Sexual Harassment of Women at Workplace
(Prevention, Prohibition and Redressal) Act, 2013 was reported during the year.
7. RISK MANAGEMENT
Your Company has adopted a mechanism to identify, assess, monitor and mitigate various
risks to key business objectives. Major risks elements associated with the businesses and
functions of the Company have been identified and will be systematically addressed through
mitigating actions on a continuing basis. These are already discussed at the meetings of
the Audit Committee and the Board of Directors of the Company. Risk Management forms an
integral part of the Companys planning process. There are no risks, which in the opinion
of the Board threaten the existence of your Company.
8. FUTURE OUTLOOK
Exports shall remain the core growth are and a lot depends on overseas economic
recovery. In the domestic sector, the outlook seems to best able in long term, with the
economy expected to perform better in the years to come. Though inflation is a worry which
may dampen real spends in the economy, but an emphasis on infrastructure and housing shall
push the demand for companys products.
9. SEGMENT-WISE AND PRODUCT-WISE PERFORMANCE
The Company is engaged primarily in manufacturing of Laminated Sheets and there are no
separate reportable segments.
10. CAUTIONARY STATEMENT:
Certain statements in this Annual Report more particularly in the Management Discussion
and Analysis Report describing the Companys strength, strategies, objectives,
predictions, expectations and estimates may be "forward looking statements"
within the meaning of applicable laws and regulations. Actual results may vary
significantly from the forward-looking statements contained in this document due to
various risks and uncertainties. These risks and uncertainties include global and domestic
financial market conditions affecting the interest rates, availability of resources for
the financial sector, market for lending, changes in regulatory directions issued by the
Government, tax laws, economic situation affecting demand / supply, price conditions in
the domestic markets in which Company operates, significant changes in political and
economic environment in India, applicable statues, litigations, labour relations that may
impact the Companys business as well as its ability to implement its strategies. Further,
market data and product information contained in this Report are based on information
gathered from various published and unpublished reports, and their accuracy, reliability
and completeness cannot be assured. The Company does not undertake to update these
statements.
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